The land development process

By Fiona Aston and Anna MackenzieAston Consultants are often asked to explain in simple terms, the land development process for land owners who are seeking to subdivide, particularly large scale subdivisions. This article sets out some basic matters any land developer should contemplate when considering a large scale land development project.

Land zoning

Is the site currently zoned for urban densities? If it is not a plan change process will be required to enable the subdivision of the site. This can be a private request made by the landowner or developer, or could be undertaken by the Council if the site is in an area they wish to see developed for urban purposes. The ability to seek rezoning of any land is impacted by a number of factors including any relevant district or regional strategies to limit or shape growth in the region/district. In the case of Canterbury much of the policy direction relating to growth has been determined by the earthquake recovery process, and in particular the Land Use Recovery Plan (LURP) which (through the Canterbury Regional Policy Statement) identifies greenfield priority residential and business areas to 2028. Essentially if the proposed site is not within a priority greenfield area it is unlikely to be rezoned by a district council until after 2028 – that is, unless a change in circumstances results in a need for this additional area for urban development. This could be, for example, due to changes in urban land take up rates, or in the availability of Council infrastructure for development.

Outline Development Plans

Increasingly councils are seeking outline development plans be included as part of a plan change process to rezone land. These plans enable the council to ensure that development occurs in an integrated manner both within the rezoned area and with adjoining areas. These can be prepared by either land developers at the time of seeking a rezoning, or by Council at any time for an area of land they anticipate to be developed in the future, and wish to ensure that integrated development occurs. These plans show a basic road network, greenspaces, anticipated housing densities, and service connections such as water, wastewater and stormwater connections, with the view to making sure appropriate cross boundary connections are made.

Development Options:

There are a number of ways a land owner progress a land development project. This may include selling the entire site to a land developer and let them undertake rezoning and developing land; obtaining the rezoning and then sell land to a developer to undertake development; undertake the rezoning and development in its entirety without a developers assistance; or undertake a joint venture. Aston Consultants can assist with identifying potential developers or development partners.

Infrastructure

Large scale subdivisions are usually required to provide for connections to existing reticulated infrastructure for services (ie wastewater, stormwater and water supply). This can be expensive with considerations of the gradient of the site to provide for adequate water flow to provide services. The cost of installing infrastructure within the site to connect to reticulated services sits with the developer, and when such infrastructure is vested in (taken over by) council, the developer may be able to claim a discount on development contributions. Stormwater is often dealt with by on site soakage, or where the ground conditions are not favourable, by creating stormwater detention and/or infiltration ponds to collect and deal with stormwater from the entire site, including off roading areas. If any new piece of infrastructure (ie a sewer network or road network) will benefit any adjoining properties, then there is opportunity to consider sharing the costs of installing or creating the network between all landowners who benefit.

Subdivision Consent

Once rezoning of a site has occurred the developer still needs to apply for a subdivision consent where infrastructure, roading, allotment layout and size, development contributions and a number of features are considered. Often, a site contamination assessment will be required where the use of land is being changed from rural to an urban use. A geotechnical assessment will usually be required to assess land suitability for development, and what type of building foundation design may be required.

Development and Reserve Contributions

These are set by Councils in their Annual Plan budgets, to provide for the increased demand on a district’s services as a result of the growth proposed by the developer. Contributions are usually a cash requirement based on the number of allotments being proposed. A developer may provide a reserve or infrastructure area which will reduce the amount of cash required by the council (this is called a land contribution), and is usually negotiated prior to subdivision consent being issued. How We Can HelpThere are a wide range of considerations (beyond those described here) which land developers need to be aware of prior to undertaking any large scale developments and, Aston Consultants and has undertaken numerous major and smaller rezoning and subdivision consenting projects, including preparing master plans and outline development plans. We can advise all aspects of the subdivision and land development process.